American Airlines (AAL) Stock Rises After Q1 Beat Despite $4 Billion Fuel Warning

TLDR

• American Airlines posted a Q1 adjusted loss of 40 cents per share, beating the 47-cent loss estimate
• Revenue hit a record $13.91 billion, up 10.8% year-over-year, topping the $13.79 billion consensus
• Fuel costs jumped 10.7% to $2.75 per gallon, with the company forecasting a rise to $4 per gallon
• Full-year guidance range of -$0.40 to +$1.10 per share topped analyst expectations of a -$0.65 loss
• AAL stock was up roughly 2% premarket despite being down 25% year-to-date through Wednesday

American Airlines posted a first-quarter adjusted loss of 40 cents per share, narrower than the 47-cent loss analysts expected. Revenue came in at a record $13.91 billion, up 10.8% from a year ago and above the $13.79 billion consensus.

Traffic rose 3.9% to 58.55 billion revenue passenger miles. Capacity grew by a more modest 3% to 72.01 billion available seat miles, pushing load factor up 0.7 percentage points to 81.3%.

The quarter marked the third loss in the past five quarters for the carrier, but the per-share loss narrowed from 59 cents in the same period last year.

American Airlines Group Inc., AAL

The stock moved higher in premarket trading — up around 2% — after a rough year that has seen AAL drop 25% through Wednesday’s close.

Fuel remains the headline problem. The average fuel cost per gallon jumped 10.7% in Q1 to $2.75. The company’s forward outlook now assumes that number climbs sharply to $4 per gallon.

$4 Billion Fuel Hit Clouds Full-Year Outlook

American flagged a more than $4 billion increase in fuel-related expenses in its full-year outlook. That is not a small number for any airline.

Despite that headwind, the company said the midpoint of its full-year guidance is roughly flat to 2025. Full-year guidance came in at a range of -$0.40 to +$1.10 per share.

Analysts had been penciling in a full-year loss of 65 cents per share, according to FactSet. So even with the fuel warning, American’s guidance range came in better than feared.

The airline also expects second-quarter revenue to grow between 13.5% and 16.5% from a year ago — which would be another record. The current FactSet Q2 consensus of $16.37 billion implies 13.8% growth.

Broader Airline Sector Under Pressure

American joins other major U.S. carriers in cutting or suspending full-year guidance. The surge in fuel costs tied to the Iran conflict has forced airlines to rethink capacity and pricing.

American said it expects continued strong demand and is looking to “recapture elevated fuel prices” — a phrase that typically signals fare increases ahead.

The U.S. Global Jets ETF has fallen 7.8% so far in 2026, while the S&P 500 has gained 4.3% over the same period.

AAL stock was up roughly 1.3% in recent premarket trading on Thursday after the results dropped.

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